U.S. Economy Adds 178,000 Jobs in March, Topping Forecasts
By Juliegrace Brufke | Quincy News Correspondent
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Washington (Quincy News) — The U.S. economy added 178,000 jobs in March, the Bureau of Labor Statistics (BLS) reported on Friday, nearly tripling economists’ forecasts and offering some relief after months of mixed economic signals.
The unemployment rate dropped to 4.3% from 4.4% in February, while wage growth slowed to 3.5% from 3.8%.
The report also issued revisions for January and February figures which combined showed that payrolls fell by a net 7,000 during those months, putting the three-month average at a modest 68,000.
Health care posted the largest gains, adding 76,000 jobs. Around 35,000 of those workers were returning Kaiser Permanente employees whose absence due to a strike had weighed on February numbers. Hospitals added 15,000 jobs of their own, contributing to a sector that has averaged 29,000 job gains per month over the past year.
Elsewhere, construction gained 26,000 jobs, transportation and warehousing added 21,000, and manufacturing saw a surprising uptick, adding 15,000 new positions, after analysts had projected a decline.
Federal government payroll fell by 18,000, while financial services shed another 15,000, pushing the sector’s losses to 77,000 since it peaked last May.
The report provided encouraging numbers, but it came with caveats. Around 396,000 people left the labor force in March and have stopped looking for further employment. The share of Americans working or seeking a job slipped to 61.9%, the lowest in more than three years. A broader measure that counts the discouraged and those in part-time work climbed to 0.8%.
The Middle East conflict didn’t have a substantial effect on March’s employment figures, but economists warn that could change. The trajectory of the U.S. labor market will depend heavily on how long it lasts and how far it spreads, according to experts.
“The question now is how much blowback will come from the war in Iran and the associated uncertainty around energy prices,” Olu Sonola, head of U.S. economics at Fitch Ratings, wrote in a note to investors, MarketWatch reported.
Long-term unemployment, those out of work for six months or more, has seen a 300,000 uptick over the course of the past year, representing more than a quarter of all unemployed individuals in the U.S.
Heather Long, chief economist at Navy Federal Credit Union, was measured in her assessment.
“The big picture: The US economy has added only 260,000 jobs in the past year. 380,000 jobs were added in healthcare. Most other industries *lost* jobs,” Long wrote on X.
U.S. stocks finished mixed Friday as oil prices surged following President Donald Trump’s remarks that the Iran conflict would continue for weeks. The Dow slipped 0.13% while the S&P 500 and Nasdaq edged higher.
The next BLS jobs report is scheduled to be released on Friday, May 8.
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